UK-Oman Trade Declines by 4.6% to £1.6 Billion: What It Means for Investors and Businesses in Oman

• By Hibba al Kindi
• August 10, 2025August 11, 2025
• exports and imports trade deficit UK-Oman trade
• With 0 comments

MUSCAT, AUGUST 10 — Trade in goods and services between the United Kingdom and Oman declined by £76 million (approximately RO 37.24 million), or 4.6%, over the 12 months ending in the first quarter of 2025. The total trade value amounted to £1.6 billion (RO 784 million), according to the latest UK government trade and investment factsheet.

UK exports to Oman fell by 9.9%, a reduction of £124 million (RO 60.76 million), reaching £1.1 billion (RO 539 million). Goods exports accounted for 41.7% of this figure, totaling £470 million (RO 230.3 million), which is a decline of 17.5% or £100 million (RO 49 million). Services exports comprised 58.3%, amounting to £657 million (RO 321.93 million), reflecting a 3.5% decrease or £24 million (RO 11.76 million).

Conversely, UK imports from Oman rose by 12%, equivalent to £48 million (RO 23.52 million), reaching £447 million (RO 219.03 million). Goods imports represented 69.4% of this total at £310 million (RO 151.9 million), increasing by 16.1% or £43 million (RO 21.07 million). Service imports made up 30.6%, valued at £137 million (RO 67.13 million), marking a 3.8% rise or £5 million (RO 2.45 million).

The UK recorded a trade surplus of £680 million with Oman over the same period, down from £852 million the previous year. This includes a goods trade surplus of £160 million, compared to £303 million previously, and a services trade surplus of £520 million, down slightly from £549 million.

Oman was ranked as the UK’s 77th largest trading partner, accounting for 0.1% of total UK trade. It was the 60th largest market for UK services exports, also representing 0.1% of such exports, and the 90th largest import market, making up less than 0.1% of UK imports.

At the end of 2023, Oman’s Foreign Direct Investment in the UK reached £140 million, more than doubling by 109% (£73 million) compared to 2022, though it still constitutes less than 0.1% of the UK’s total inward FDI stock.

Special Analysis by Omanet | Navigate Oman’s Market

The recent decline in UK exports to Oman and reduced trade surplus highlights challenges in the bilateral trade relationship, signaling potential strains for businesses reliant on UK markets. However, the notable rise in UK imports from Oman and Foreign Direct Investment surge presents strategic opportunities for Omani exporters and investors to leverage growing demand and cross-border capital flows. Smart investors should consider diversifying trade partnerships and enhancing value-added exports to mitigate risks from fluctuating UK demand.